Forum Discussion

2 years ago

Tax Code

Should I still use "cap" as tax code if purchasing a furniture if it's eligle for Instant Asset Write off because it's below 1,000 or shall I use "gst"? Thank you.

Freman
2 years ago
Earl_HD

"Using the "GST" tax code implies that Goods and Services Tax is applicable to the purchase. However, when an asset is eligible for the Instant Asset Write-Off, it's typically excluded from GST calculations."

Earl, your response is quite misleading, it implies there is no GST to claim ('Typically Excluded') on assets elligible for instant asset write offs. If you meant that the initial purchase is not excluded (ie you do claim the GST) and the subsiquent write off claim is then excluded, then you should have stated this.

Alana3

Since the ATO simplified the BASs GST section to require just G1, 1A & 1B (ie we are not reporting any info about purchases at all other than the GST paid). There is now no need to use the old 'CAP' tax codes, you can use 'GST' tax code instead. You can continue to use CAP of course & its only real benefit is for you own internal reporting.
Myself being old school and having been using & supporting MYOB since 1990/1991 I still use CAP tax codes to this day but its nothing more than a habit, its usefulness is next to nothing these days. (I'll break this habit one day I keep promising myself LOL)

Earl_HD

MYOB Moderator

Hi Alana3,

Thank you so much for your post and welcome to the Community Forum!

In a situation like this, it's always a good practice to consider consulting with a tax advisor or accountant. They can provide guidance to ensure that you're applying the correct tax treatment for your particular circumstance.

Using the "GST" tax code implies that Goods and Services Tax is applicable to the purchase. However, when an asset is eligible for the Instant Asset Write-Off, it's typically excluded from GST calculations.

Feel free to post again, we're happy to help!
Regards,
Earl

Freman

Trusted Partner

2 years ago

Earl_HD

"Using the "GST" tax code implies that Goods and Services Tax is applicable to the purchase. However, when an asset is eligible for the Instant Asset Write-Off, it's typically excluded from GST calculations."

Earl, your response is quite misleading, it implies there is no GST to claim ('Typically Excluded') on assets elligible for instant asset write offs. If you meant that the initial purchase is not excluded (ie you do claim the GST) and the subsiquent write off claim is then excluded, then you should have stated this.

Alana3

Since the ATO simplified the BASs GST section to require just G1, 1A & 1B (ie we are not reporting any info about purchases at all other than the GST paid). There is now no need to use the old 'CAP' tax codes, you can use 'GST' tax code instead. You can continue to use CAP of course & its only real benefit is for you own internal reporting.

Myself being old school and having been using & supporting MYOB since 1990/1991 I still use CAP tax codes to this day but its nothing more than a habit, its usefulness is next to nothing these days. (I'll break this habit one day I keep promising myself LOL)

Alana3
2 years ago
Alana3
2 years ago
Freman Earl_HD : Thank you :)
- Leneth_A
  Former Staff
  2 years ago
  Hi Alana3,
  
  Thank you for your post and a warm welcome to the Community Forum.
  
  We are delighted to hear that your concern has been resolved. I would also like to thank one of our trusted partners, Freman, for sharing his knowledge within the community. I'm confident that other users will benefit from the information provided. We will now close this thread. If you encounter any further issues, please don't hesitate to start a new post, and one of our moderators will assist you.
  
  Cheers,
  Leneth